Why it's important to check standard variable mortgage rates.

Many borrowers find themselves on lenders standard variable mortgage rates when their fixed deals end. Many home-owners do not review their mortgage product and this has led to many paying over the odds on a monthly basis. Some home-owners could save as much as £100 a month by switching products.

In general the most popular deals are those with an initial special rate fixed for a period of time, after which a borrower pays back their mortgage at the lender's standard variable mortgage rate. Since the banking crisis standard variable rates have ranged from between 2 and 6 per cent above base rate. Inertia tends to keep many with their existing lender, but shrewd borrowers can shop around and take advantage of the cheaper deals on offer.

Borrowers who fail to regularly monitor the value of their mortgage tend to end up on their lender's standard variable rate. The repayments tend to be uncompetitive when compared to special offers on the market. The rate moves broadly in line with the Bank of England's base rate, although the lender is not obliged to pass on any changes to the borrower.

Good value mortgages will allow borrowers to leave at a minimal cost once the initial term ends. The advice for borrowers currently on standard variable mortgage rates of 3 per cent or less is to stay where they for the time being and, as rates rise in the future think about switching to secure a good value fixed rate deal.